itsallaboutfinance.comFinance , Insurance, Debts

Car top sellers General Motors, Ford Motors, and Toyota Motors had experienced a drastic change in their sales to the worst in 26 years. In January, auto sales has fall down by 38 percent, which came out to be more than expected to their worst levels since 1982.
As with General Motors, they had reported that its sales was down by 49 percent from a year ago. Ford motor on the other hand said that their sales fall down at 39 percent for it Ford Lincoln, and Mercury brands. However, if they are to include their sales on Volvo their sales have fallen 40 percent. In addition, Chrysler LLC had reported of their 55 percent down in sales.
Nevertheless, it is not just the US automakers tumbled sales. Other automakers like Toyota, Honda, and Nissan also have encountered the same problem as the US automakers do. US sales of Toyota have slowed down to 32 percent, while Honda sales decreases by 28 percent and Nissan had tumbled down to 30 percent.
Edmunds.com, sales tracker had did a forecast and the result turns out to be even worse that forecasted. Edmunds.com forecasts include GM sales to tumble around 38 percent, Ford around 30 percent and Chrysler to drop by 48 percent. It also had a forecast for Toyota to drop by 25 percent, Honda at 23 percent, and Nissan by 28 percent.
According to another sales tracker Autodata, the seasonally adjusted annual sales rate, or SAAR had fell to 9.6 million, which is at 15.4 million earlier. In more than 26 years, this is the first time that auto sales drops below the 10 million mark. Mike DioDiovanni, the director of sales analysis of GM said that January will mark the as the first month on record that auto sales in the United States trail sales in China.
GM said that its fleet sales tumbled 80 percent in the month, which means sales of only 1,000 cars out of 12,000 fleet sales that went to rental companies. US carmaker Chrysler reported a drop in fleet sales of 81 percent and 65 percent decrease in fleet sales for Ford this January.
Chrysler on the other has moved away from fleet sales to focus on sales to consumers, which is more profitable. According to Jim Press, the Vice Chairman of Chrysler, “It is better to shut plant capacity than to keep them running to supply the rental industry”.
However, not the fleet sales alone are slowing down and suffering the pain. Retail sales also had stumbled along with the fleet sales. With GM, they reported a 38 percent decrease in retail sales, Chrysler drop at 35 percent, and Ford had 27 percent decrease.
Sales are not expected to get back in the coming months as long as there are so many worries about job losses and with the overall economy. With the current economic condition, many would rather hold on to their old cars than to buy a new one. Many of the consumers have realized that what they right now is good enough until the dust settles. power inverters |